As a Swedish investor on the US stock market, I’ve always had several factors working against me:
- The exchange rate
- The advantage of having a “home base” and being able to sense societal trends
- DRIP (Dividend Reinvestment Plan)
Nowadays, the exchange rate is less of an issue since almost everyone except Nordea offers currency accounts linked to investment insurance.
This can even work to my advantage — I can choose when to exchange new capital, and I now keep all dividends in USD.
Not having a home base is still a disadvantage, but not a huge one. America is a vast country, and I assume not everyone there has the time or ability to sense trends either.
DRIP is now also available in Sweden through certain online brokers, although far from all stocks support it.
The conditions for us foreign investors on the US stock market have improved considerably in recent years.
Soon I’ll have no excuses left when things don’t go as planned.